Supplier Quality Manual

NISSAN TRADING CORP.
,
USA
The purpose of this Supplier Quality Manual is to describe NITCO

Supplier Quality Assurance (SQA). This manual applies to those
companies whose products and/or services affect the quality of our
parts and the delivery of goods and services to our customers
Page 1 of 19 This document in printed format is valid for 24 hours after 2/23/2015; 4:03 PM. The current
revision is available on the NITCO Intranet site in the ISO Portal. THIS IS AN UNCONTROLLED DOCUMENT
IN PRINTED FORMAT.
Table of Contents:
Quality Management System Authorization Signatures
IN PRINTED FORMAT.
Signature:
Signature:
x
x
Approved by Tom Oyamada
Title: Vice President
Approved - by Troy Holden
Title: General Manager
Signature:
x
Signature:
x
Approved - by Chuck Lister
Approved by Bill Oglesby
Title: Purchasing Manager
Title: Quality Supervisor
IN PRINTED FORMAT.
Definitions:
Non-conforming :
Parts or materials not meeting the agreed specifications in the drawings or documents
provided and parts not properly packaged or labeled
Lot:
Parts made in a particular manufacturing process
PMR:
(Part Modification Request) Temporary departure from the original specification
PPM:
(Parts Per Million) The process for measuring defects/non-conformances
RDR:
Receiving Discrepancy Report
ASN:
Advance Shipping Notice
RFQ:
Request for quote
1.0 Supplier Pre-qualification Process

PURPOSE:
To describe the steps taken to select suppliers.
RESPONSIBILITIES:
It is the responsibility of the Source Committee to Add, Remove or Change suppliers.
Source Committee consists of the Director or Vice-President, Purchasing Manager, General Manager and
Quality Manager.
Purchasing is responsible for sending RFQ's and collecting bid data for all purchased parts and materials for
re-sale.
Quality is responsible for sending RFQ's and collecting bids for Gauges & Calibration Services.
IN PRINTED FORMAT.
Production Control is responsible for sending RFQ's and collecting bids for related materials/services and
Transportation Services as well as internal packaging needs.
DESCRIPTION:
The following steps should be taken by each responsible department for ALL potentially new
suppliers:
1. Current or past customers of a potential new supplier(s) are to be contacted to confirm quality and
delivery performance.
2
Process information and/or part samples (physical, picture or brochure) shall be requested.
(Transportation Services are excluded from this request)
3. Based on the above information, potential suppliers are selected for competitive bidding.
4. An RFQ packet which includes product/material specifications, estimated annual quantities, customer
standards, drawings (where necessary), packaging specs (when necessary) and lead time requirements will be
sent to all potential suppliers.
5. The bids of the proposed supplier(s) will be analyzed and submitted to the requestor for review and
approval. (Production Control is responsible for this step when sourcing Packaging and Transportation
Services)
6.
For transportation companies, Production Control will take the following steps:
a. request a copy of insurance certificates, claims history, delivery performance, and list of types of
equipment.
b. send routing information, requirements, and requests bids.
c. analyze bids and select proposed supplier.
7.
For packaging and transportation, Production Control analyzes bids and selects proposed supplier.
REFERENCE DOCUMENTATION:
2.0 Adding Suppliers to the Approved Supplier List
PURPOSE:
To describe the criteria for adding a supplier to the Approved Supplier List.
RESPONSIBILITIES:
IN PRINTED FORMAT.
It is the responsibility of the Source Committee to approve the addition of supplier(s) to the approved
suppliers list.
DESCRIPTION:
The following items are required to be added to the NITCO "Approved Supplier List."
Suppliers providing materials for re-sale must be ISO 9000 certified, QS 9000 certified, TS16949 Certified
or achieve an average score of a 80 or higher on a the NTC Supplier Audit which is conducted at the supplier's
facility, or pass a third party QS audit. An average score of 80 or higher must be achieved on every section of
the audit. Sections with an average score below 80 will require a written corrective and preventive action plan
and documentation to prove that the deficiencies have been corrected.
All suppliers must meet the following requirements;
Maintain 98% On Time Delivery

Maintain a PPM of 50 or less
Maintain 98% Shipping Accuracy
Maintain a score of 80 on the Nitco Internal Supplier Survey which is performed
Bi-Annually or provide proof of a Certified QMS (ISO/QS/TS)
The Source Committee must approve the addition and deletion of suppliers to the Approved Supplier List.
NTC-SOP-
3.0 Outsourcing Quality Sorting/Inspection and Temporary Labor

PURPOSE:
To describe the requirements for outsource labor. (Including 3rd party Quality Inspection/Sort companies)
RESPONSIBILITIES:
When deemed as a needed service, labor and certain services may be outsourced to an Approved Source.
Outsourcing must be approved by the Quality Supervisor for Quality related issues. The Operations Manager
(Department Manager Level or Higher) may approve any third party labor use.
DESCRIPTION:
IN PRINTED FORMAT.
The following items are required:

The labor or service provider must provide to NITCO Administration/HR Department Supervisor prior to
consideration the following:
1)
Proof of liability insurance for any employee in the facility (may include workers comp if using
temp labor for daily operations)
2)
If a Quality Sorting Firm, must provide a contract accepting liability for releasing or approving parts
deemed by the customer as unfit for use or defective.
3)
Must sign a waiver to accept any charge-backs from the customer if the sort company approves parts
and releases parts to ship that are later found defective, including further sorting charges.
4.0 Production Part Approval Process (PPAP/ANPQP)

PURPOSE:
To define the process for approval of production parts
RESPONSIBILITIES:
It is the responsibility of the Quality Assurance and Purchasing group to ensure all qualifications are met prior
to awarding new business to any supplier.
DESCRIPTION:
Fasteners and Tier/SCM Parts

A supplier meeting is held in person or by phone to review the drawing, testing, PPAP/ANPQP
requirements, and the inspection standard.
The supplier conducts a sample production run necessary to meet requirements for functional parts
Nitco place a PO for the functional parts through their Production Control Dept..
If the ANPQP/PPAP and process review is not complete then NITCO prepares Interim Approval
and submits it to the supplier. The supplier takes corrective actions and resubmits PPAP.
IN PRINTED FORMAT.
If the PPAP and process review are complete then the QA Dept. determines whether the part passed
the functional trial. (PSW approval)
If the part does not pass, the supplier takes corrective actions to fix the part problems and the
process reverts
If the part did pass, the Engineering Dept. determines if the PPAP is complete. The supplier
completes open items if not complete.
Failed functional trials and PPAP packages must be immediately addressed by the supplier to meet
Nitcos needs to close the open issues as soon as possible as to not interrupt production.
.
SUBMISSION LEVELS
PPAP/ANPQP submissions shall be submitted using the customer specific documents that will be provided to
the supplier through the NITCO Purchasing and/or Quality/Engineering Department.
5.0 Supplier Non-Conformances

PURPOSE:
To describe the process for handling supplier non-conformances.
RESPONSIBILITIES:
It is the responsibility of the Quality Assurance, Production Control, and the Purchasing Departments to
determine non-conformances and the actions that are necessary for resolution.
DESCRIPTION:
Products/services which do not meet specified requirements will be considered nonconforming. Examples of
non-conformances include but are not limited to damaged material, mis-labeled material, out-of-specification
material, incorrect SNP, etc.
1. Supplier will be notified of the nonconformance by phone, fax and/or e-mail.
2. Supplier will be required to do one or more of the following:
a. replace product
b. sort, rework or repair product to meet specified requirements at supplier cost
c. pay for damages to product incurred during shipping
3. If NITCO has to sort or repair a supplier's product for any reason, the supplier will be charged for
labor, materials used, and/or engineering time required to correct the nonconformance at the rate
of $40
per man hour, plus an administration fee for clerical work created because of the
nonconformance. The
current administrative fee is $250 per occurrence.
IN PRINTED FORMAT.
4. For each nonconformance detected, the supplier will be required to take corrective actions and submit
an 8-D or Corrective Action in the NITCO format or customer specific format.
6.0 Approved Supplier Continuous Monitoring

PURPOSE:
To describe the process of continuously monitoring suppliers.
RESPONSIBILITIES:
monitor supplier performance.
DESCRIPTION:
Continuous monitoring requirements are defined below. The table below shows each supplier and the items
that NITCO will monitor. The Supplier Quality Performance Reporting System is described in section 7.0 .
The items listed below with an asterisk beside them are included in the Supplier Performance Reporting
System.
1. Quality System Audit - Specified key suppliers are required to have a quality systems audit performed by
NITCO every other year beginning 2004 (unless the supplier is ISO 9000/QS 9000 Certified or NITCO has
not purchased products/services from the supplier within the past year).
NITCO reserves the right to perform a quality systems audit at any given time because of poor quality
performance by any supplier. Purchasing and Quality Assurance Departments will review the audit results and
provide the necessary feedback to the supplier. (Applies to ALL suppliers)
Sections with an average score below 80 will require a written corrective action plan and
documentation that verify the deficiencies have been corrected. Timing for completion of corrective actions
will be determined and agreed upon by NITCO and the supplier on a case by case basis. NITCO reserves the
right to verify the audit results at the supplier's facility. Suppliers will be debited for any travel expenses due
to return visits to close any open issues.
2. Layout Data - NITCO may request layout data for any concern(s) on an as needed basis.
3. Response Time to Part/Material Quality Concerns - When requested, suppliers are required to respond to a
part quality defect/concern using the 8-D form or the NTC Corrective Action Form. If necessary, supplier will
provide personnel to rework or re-inspect parts.
IN PRINTED FORMAT.
8-D
The 8-D form can be obtained by contacting the NITCO Quality Department.
Signed PIR should be completed and faxed to the Quality Department within 24 hours of
concern notification and containment of subject parts must take place immediately.
Completed 8-D should be completed and returned to the Quality Engineering Department
within 14 days of the concern notification.
Note 1: The above 8-D timing requirements are guidelines to be adhered to by each supplier. Any deviation
to the above timing requirements must be agreed upon by NITCO and the supplier on a case by case basis or
be subject to additional point deductions from the supplier's quarterly PPM score.
Response Time Scoring for Quarterly Performance Reporting System The refusal of any supplier to provide personnel for rework or re-inspection of defects per occurrence.
If NITCO requests the supplier to provide personnel to rework or re-inspect product at our
facility or our customer's facility, and the supplier refuses to adhere to the request, then the Supplier will have
(18) points deducted from the overall quarterly supplier rating score and will be charged all rework and sort
time. These points will be deducted for each occurrence.
*4. On-Time Delivery - Specified key suppliers are required to meet 98% on-time delivery performance. NITCO
monitors on-time delivery and uses this information to apply scoring in the quarterly supplier performance
rating. Delivery non-conformances will be tracked by attainment of meeting the weekly/monthly order. Each
point will count as an occurrence and will be subject to all monetary charges unless prior arrangements are
made with and approved by the Materials Supervisor.
*5. Number of Quality Concerns - Specified suppliers are required to meet product/material quality expectations,
measured in parts per million (PPM). Supplier part/material quality is monitored and reported as part of the
Quarterly Supplier Performance Reporting System.
PPM calculations are based on the total number of defective parts or amount of defective
material divided by total number of parts or amount of material received, multiplied by 1 million.
Parts/materials are counted as defective when NITCO personnel are required to perform rework or reinspection or if the end-user reports PPM to NITCO. Certified stock is required for the first shipment of
product/material after the concern. NITCO will verify the certified stock and if any defect(s) are found in the
certified stock, the entire lot will count against the supplier's PPM.
6. NIST Trace ability - Calibration service suppliers are required to have trace-ability to the National Institute of
Standards and Trace-ability (NIST) and be Guide 25 certified.
Note 2: If Quality Performance Rating (PPM) score falls below 80% attainment, see 8.0 Supplier
Improvement Process.
IN PRINTED FORMAT.
7.0 Supplier Performance Reporting

POLICY:
PURPOSE:
To describe the method for tracking and rating key supplier performance
RESPONSIBILITIES:
It is the responsibility Nitco to evaluate key supplier performance and the Purchasing Department shall
forward results to individual suppliers.
DESCRIPTION:
Key supplier performance data is tracked by the above departments for key suppliers. A summary of the key
supplier's performance will be sent to each supplier quarterly.
The Quality Department will record any problems with calibration suppliers and the Production Control
Department will track response time to problems and on time delivery performance for packaging and
transportation suppliers that are purchased by NITCO.
Note: Acceptance criteria for ALL suppliers is 0 defects. One nonconforming part requires the entire lot to
be 100% re-inspected and/or reworked. PPM calculations will be based on the number of defective parts and
the total number of parts shipped per month.
8.0 Supplier Improvement Process

POLICY:
PURPOSE:
To describe Nitcos improvement process for suppliers whose quarterly performance rating drops below 80.
RESPONSIBILITIES:
IN PRINTED FORMAT.
determine improvement processes to suppliers.
DESCRIPTION:
NITCO evaluates suppliers on a quarterly basis. If the supplier's PPM is not at or below the intended goal or
their quarterly performance rating drops below 80 (Fair), then NITCO and the supplier will follow the
improvement process explained below. (This section does not apply to packaging, transportation, and
calibration service suppliers.)
The Quality Assurance Department and/or Purchasing Department will discuss with the supplier the
associated quality, delivery, or response issues and take the necessary corrective and preventive actions to
correct the problem(s).
When it is determined, based upon past performance, that a supplier has failed to perform to the expectations
of NITCO, according to the SQM, and all efforts to assist the supplier's/sub-contractor's development have
been exhausted, they can be removed from the Approved Supplier's List.
Future business will be at the discretion of the Source Committee.
Packaging, Transportation, and Calibration Service Suppliers
The Production Control Manager will review packaging and transportation suppliers' performance semiannually. If problems exist, a meeting will be held with the supplier to discuss corrective and preventive
actions.
Calibration Services
For calibration service suppliers, the Quality Manager will determine when and if a meeting is needed with a
supplier to discuss problems and corrective and preventive actions.
9.0 Removing Suppliers from the Approved Supplier List

POLICY:
PURPOSE:
To describe the process for removing a supplier from the Approved Supplier List.
RESPONSIBILITIES:
It is the responsibility of the Source Committee to remove suppliers from the approved suppliers list.
DESCRIPTION:
IN PRINTED FORMAT.
For purchased parts the Source Committee will determine whether the supplier should be removed from the
Approved Supplier List and will not be eligible to be added to the list again for a period of 2 years.
For packaging and transportation suppliers, the Production Control Manager will decide when to
recommend to the Source Committee that a supplier be removed from the Approved Supplier list.
For calibration service suppliers, the Quality Manager will determine when a recommendation to remove a
supplier from the list should be made to the Source Committee.
TEMPORARY SUSPENSION:
A Supplier may be temporarily suspended from receiving RFQs from Nitco based on decisions due to poor
quarterly ratings or repeat issues that are not being proactively solved at the Suppliers site. Nitco reserves the
right to limit or deny the right to the supplier to participate in growth activities if the supplier is not meeting
the standards set by Nitco for Quality, Delivery, Cost and Customer Service.
10.0 Supplier Audit Scoring Criteria

POLICY:
PURPOSE:
To describe the criteria for scoring a supplier audit
RESPONSIBILITIES:
determine audit scoring to the suppliers.
DESCRIPTION:
Sections 1 through 7 of the QSA Manual will be used as the scoring criteria for all suppliers, excluding
packaging, transportation services and calibration services.
IN PRINTED FORMAT.
11.0 Supplier Packaging/Labeling

Please refer to the
NITCO Packaging Manual
by clicking on the below link
Supplier packaging and labeling must adhere to these guidelines and are a part of the supplier ratings as
indicated. Any non-conformance will be handled as outlined in the manual in addition to any affect on the
quarterly quality score. Please consider the manual a part of the SQA Manual as if copied herein. The
manual may be revised so please look for latest revisions on our website.
NITCO SUPPLIER PACKAGING MANUAL
IN PRINTED FORMAT.
11.0 Supplier Incoming Part Conformance

POLICY:
PURPOSE:
To ensure supplier conformance in meeting Nitco ISO9001-2000 requirements of NTC-SOPRESPONSIBILITIES:
It is the responsibility of the Quality Assurance, Production Control, and the Purchasing Departments
to verify supplier conformance and issue corrective action to any supplier who is not in conformance.
DESCRIPTION:
Supplier shall provide documentation with each shipment certifying that the parts are made to the
product specifications per the latest revision of the drawing and being delivered in the manner on the
approved Packaging Data Sheet including Packaging Style, SNP and Labeling.
The supplier is also agreeing to conformance of the ordered quantity and is guaranteeing proper
delivery amount in the time specified in the release given from Nitco to the supplier. Inability to meet
these guidelines will result in a debit memo as outlined in the Packaging Manual.
Administrative Fees: $250
Occurences: $25 each
Labor: $40 per man hour
Any requirement for Expedited Freight to meet the delivery needs of Nissan Trading MUST be PreApproved by Nissan Trading in advance. Nissan Trading will not negotiate nor accept any charges
for expedite fees concerning materials due to forecast changes, add-on orders, etc. without PREAUTNORIZATION. Please fill out the Authorization for Emergency Transportation Form (NTCFM-7.5-29) and have all signatures before the actual occurrence to assure payment from Nissan
Trading. Nissan Trading MAY at their discretion negotiate with Nissan North America to receive
reimbursement if the cause is found to be with NNA. The supplier shall have NO direct recourse
with NNA, and must negotiate all issues through Nissan Trading Corp., USA.
Nitco Packaging Manual
NTC-FM-7.5-29
IN PRINTED FORMAT.
12.0 Nissan North America Warranty Agreement

POLICY:
PURPOSE:
To recover costs of Warranty Claims filed by NNA against Nitco suppliers.
RESPONSIBILITIES:
It is the responsibility of the Quality Manager and the I.T. Manager to issue monthly charges for
Warranty Program Charge Backs.
DESCRIPTION:
Effective April 1, 2004 Nissan Trading Corp., U.S.A. shall take the warranty charge EDI provided by
NNA and create electronically a debit reflecting only the actual charges from NNA. The process is to
pass-through the charges and not create a burden on Nissan Trading Corp., U.S.A. for the total
amount of the debit from NNA. Nissan Trading Corp., U.S.A. will asses an administrative fee each
month for processing costs of the warranty charge. This is to offset the labor to collect the data and
create the debits.
The warranty claim will include:
1. Part(s) Cost
2. Labor Cost(s)
3. Other cost(s)
All warranty claims are subject to Nissans normal validation procedures and Nissans applicable flat
rate schedule in accordance with Nissan Warranty Policy.
Nitco will issue a monthly debit memo along with a detail of the part number, claim, etc. The full
reported EDI file is available on request.
IN PRINTED FORMAT.
DEFINITION:
Warranty Claim: A claim related to a defect in a vehicle or part, which if related to a vehicle is
discovered after the completed vehicle leaves any Nissan manufacturing facility, repair of which
vehicle or replacement of which part Nissan must perform free of charge in accordance with the
applicable Nissan warranty for the vehicle or part.
Warranty Expense: any cost or expense incurred by Nissan in connection with a Warranty Claim
Part Cost: The price Nissan would pay for the replacement part, as well as transportation, handling,
import duties, etc.
Labor Cost: Nissans authorized hourly labor rate for the repair and installation of replacement parts
Other Cost: All costs and expenses incurred by Nissan in relation to the warranty claim not included
in the part and labor cost. May include towing, rental reimbursements, cost of travel and
transportation, and other miscellaneous costs incurred by Nissan.
Warranty claim disputes will be filed with NNA and the final judgment of liability will belong to
NNA. Decisions made by NNA to credit any amounts will be passed to the supplier and a credit
issued, however Nitco may not be able to provide sample parts or additional documentation for
warranty claim investigations. The EDI master file is available to suppliers for review in the event
more information is needed for reference.
Nissan North America Supplier Quality Manual ; Section 20 ; November 1998 Issue
Nissan Master Purchase Agreement
Nissan North America EDI 142 Documents (Monthly)
13.0 Part Termination Procedure

POLICY:
PURPOSE:
To define the timeline for filing financial claims for parts that are no longer active and are deemed as
obsolete or balance-out parts.
IN PRINTED FORMAT.
RESPONSIBILITIES:
It is the responsibility of the Production Control Department to issue a forecast with firm orders once
weekly to alert the supplier of planning volumes. The Production Control Department will also
generate a report for planned balance out parts through the system to notify suppliers of parts that are
falling off of the forecast in coming months. It is the SUPPLIERS RESPONSIBILITY not to
overbuild these parts and to work with Nitco to have a low rate of obsolete parts on model changes
and engineering changes.
DESCRIPTION:
Nissan Trading Corp. will demand that each supplier in writing within 30 days of the last firm order
date from Nissan Trading Corp. Any submission after the time period will NOT be considered for
material or finished goods reimbursement. The claim must be received by electronic format prior to
the deadline in order for Nissan Trading to process the claim through NNA. As per the Material
Responsibility Letter, the liability of Nissan Trading is for a maximum of 60 days of combined
finished goods and raw material. Under no circumstance will Nitco be liable for any additional
material. Nitco will not take responsibility for any materials that we cannot process through the NNA
Claim System. Once the thirty-day window is closed, we cannot assist any supplier in the possibility
for reimbursement for obsolete parts or materials.
Nitco Supplier Letter (Liability of Material)
Part Termination Claim Form
IN PRINTED FORMAT.
Quality Manual Document Revision History/Document Distribution
Date
Date
06/30/2004
Description
Issued By
Approved
Draft Issue
T. Holden
PENDING
08/13/2004
Revision 1
08/20/2004
08/20/2004
Forward copies to all
T.Holden
08/20/2004
Admin
Suppliers
05/08/2005
05/11/2005
05/14/2005
Add Expedite Form and

Explanation
T. Holden
Add link to Nitco Home Page
05/09/2005
C. Hysell
For QM and Packaging Manual
IN PRINTED FORMAT.

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NISSAN TRADING CORP.

The purpose of this Supplier Quality Manual is to describe NITCO

Quality Management System Authorization Signatures

Title: Vice President

Approved - by Troy Holden

Title: General Manager

Approved - by Chuck Lister

Approved by Bill Oglesby

Title: Purchasing Manager

Title: Quality Supervisor

1.0 Supplier Pre-qualification Process

2.0 Adding Suppliers to the Approved Supplier List

Maintain 98% On Time Delivery

3.0 Outsourcing Quality Sorting/Inspection and Temporary Labor

The following items are required:

4.0 Production Part Approval Process (PPAP/ANPQP)

Fasteners and Tier/SCM Parts

5.0 Supplier Non-Conformances

6.0 Approved Supplier Continuous Monitoring

7.0 Supplier Performance Reporting

8.0 Supplier Improvement Process

9.0 Removing Suppliers from the Approved Supplier List

10.0 Supplier Audit Scoring Criteria

11.0 Supplier Packaging/Labeling

NITCO Packaging Manual

by clicking on the below link

NITCO SUPPLIER PACKAGING MANUAL

11.0 Supplier Incoming Part Conformance

12.0 Nissan North America Warranty Agreement

13.0 Part Termination Procedure

Quality Manual Document Revision History/Document Distribution

Forward copies to all

Add Expedite Form and

Add link to Nitco Home Page

For QM and Packaging Manual

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